Business
‘Used car imports could capture 50% of market’ | The Express Tribune
PAAPAM says rising influx threatens Rs300b local production, 1.83m jobs as reduced duties distort competition
The commerce minister directed industry stakeholders to submit comprehensive proposals for a long-term automotive policy aligned with national industrial goals. Photo: file
LAHORE:
Pakistan’s local automobile industry has sounded a loud alarm over rising used-car imports, warning that the market share of imported vehicles could soar to 50% if current fiscal and import policies continue unchecked. The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) fears this surge would cripple local production and dismantle the industrial ecosystem that took decades to develop.
“Industry data indicate that used-car imports have already captured around one-quarter of the domestic market. If current policies persist, this share could surge to 50% within a short period,” said Shehryar Qadir, Senior Vice Chairman of PAAPAM. “That means every second car sold in Pakistan would be an imported used vehicle, effectively displacing local production capacity and threatening the sustainability of OEMs and their supplier networks.”
The association’s concerns come amid fiscal adjustments that have reduced effective duties and taxes on imported used cars, enabling importers to bring in vehicles at much lower prices than locally assembled units. Many of these imported cars are older and undervalued but enter the market as low-cost options that distort competition. Local manufacturers continue to pay full duties and comply with domestic safety and emission standards, creating an “uneven and unsustainable playing field.”
“This steep drop in import taxes undermines the government’s industrialisation objectives and erodes the competitiveness of domestic assemblers who have invested heavily in localisation, employment and technology transfer,” Qadir said.
According to PAAPAM’s latest diagnostic report, Pakistan’s auto parts industry binds together over 1,200 Tier-1, Tier-2 and Tier-3 suppliers, supporting 1.83 million skilled jobs, including around 300,000 directly in the auto parts segment. The sector anchors localised production valued at more than Rs300 billion annually. It substitutes roughly $1.25 billion worth of imports every year. Over Rs100 billion has been invested by local vendors in plant and tooling. The industry has achieved localisation levels of up to 60% in several vehicle categories.
“Imported used cars introduce a double-down effect on depreciation,” Qadir explained. “These vehicles are already aged and lose value quickly, depressing overall market prices and diminishing resale values for new locally manufactured cars. This artificially deflated market discourages customers from purchasing new vehicles and erodes manufacturers’ margins.”
Pakistan’s automotive sector is already under pressure from sluggish demand, expensive financing and high energy costs. Car sales dropped by more than 40% in the last two fiscal years, largely due to record-high interest rates and inflation that curtailed consumer buying power.
“Used-car liberalisation might appear to offer short-term relief to consumers, but it’s economically destructive,” said Dr Nishat Alam, an independent economist and auto-sector analyst. “Every imported vehicle adds to the current account deficit, displaces local jobs and drains value from the supply chain built painstakingly over decades. If localisation unravels, the country could face a permanent $1 billion annual import shock.”
“The government must decide whether Pakistan will remain a dumping ground for second-hand imports or evolve into a strong regional manufacturing hub,” Qadir said.
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Foreign Portfolio Investors put Rs 19,675 crore into Indian equities in early February, ending three months of selling amid global cues and a US-India trade pact.
US-India trade deal hopes lift FPI inflows to Rs 19,675 cr in early Feb
Foreign Portfolio Investors Reverse Trend With Rs 19,675 Crore February Buying: Foreign Portfolio Investors (FPIs) made a notable comeback in early February, infusing Rs 19,675 crore into Indian equities during the first half of the month, aided by improving global conditions and the US-India trade agreement.
This marks a clear shift after three consecutive months of net selling. Depository data shows FPIs withdrew Rs 35,962 crore in January, Rs 22,611 crore in December, and Rs 3,765 crore in November.
Even with the renewed buying in February, the broader trend for 2025 remains negative. So far this year, foreign investors have pulled out a net Rs 1.66 lakh crore (USD 18.9 billion) from Indian equities, making it one of the weakest periods for overseas inflows in recent times. Currency volatility, global trade tensions, concerns over potential US tariffs, and elevated valuations had weighed heavily on flows earlier.
Global Cues And Domestic Stability Support Recovery
Himanshu Srivastava, Principal Manager–Research at Morningstar Investment Research India, as quoted by PTI, said the latest inflows were largely driven by easing global macro pressures. Softer US inflation data improved expectations around the interest rate cycle, helping stabilise bond yields and the US dollar. This, in turn, enhanced investor appetite for emerging markets such as India.
On the domestic front, stable inflation, resilient macro indicators, and corporate earnings largely in line with expectations strengthened confidence in India’s economic trajectory, he noted.
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, also attributed the renewed interest to the US-India trade pact, the growth-oriented Union Budget 2026, easing global trade uncertainties, and steady domestic interest rates.
Volatility Persists Despite Net Buying Days
FPIs were net buyers in seven out of eleven trading sessions in February up to the 13th, turning sellers on four occasions. However, cumulative data indicates a net equity outflow of ₹1,374 crore so far this month.
The divergence was largely due to a sharp sell-off of Rs 7,395 crore on February 13, when the Nifty dropped 336 points. The period also witnessed substantial selling in IT stocks amid the so-called “Anthropic shock.” VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said as quoted by PTI, foreign investors likely reduced exposure to IT stocks aggressively in the cash market, as the IT index fell 8.2 percent in the week ended February 13.
(With PTI Inputs)
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February 15, 2026, 16:54 IST
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New Delhi: Gold continues to remain the most trusted investment option among young Indians, even as access to financial products like mutual funds, stocks, and cryptocurrencies expands, according to a recent consumer survey.
The Smytten PulseAI survey, conducted among 5,000 consumers aged 18–39, found that 62 percent of respondents chose gold as their preferred investment, highlighting the metal’s enduring appeal among Gen Z and Millennials.
When asked how they would invest Rs 25,000, about 61.9 percent said they would choose gold, far ahead of mutual funds (16.6 percent), fixed deposits (13 percent), stocks (6.6 percent), and crypto (1.9 percent), the survey showed.
The findings also indicate that gold buying is becoming more personal and investment-driven rather than tradition-led. Around 66.7 percent of respondents said their gold purchases were primarily their own decision, reflecting a shift in mindset among younger investors.
Another notable trend is the move toward smaller and more frequent purchases. Nearly 62 percent of recent gold purchases were below 5 grams, suggesting that younger buyers are entering the market gradually instead of making large, occasional purchases.
Gold’s appeal becomes even stronger during uncertain economic conditions. The survey found that 65.7 percent of respondents consider gold the safest investment option compared with bank savings, mutual funds, or equities.
For many young earners, gold is no longer bought only for weddings or family occasions. Nearly 24 percent said their first gold purchase was linked to receiving their first salary, while 23.9 percent bought gold as an investment decision, signalling changing motivations behind gold ownership.
Overall, the survey highlights that while investment behaviour among young Indians is evolving, gold continues to play a central role as a trusted store of value and financial safety net.
Business
PPF account rules: Why you can open only one PPF account and what it means for your tax savings
New Delhi: The Public Provident Fund (PPF) is one of India’s most popular long-term, government-backed savings schemes. But many investors often wonder whether they can open multiple PPF accounts to increase their tax-saving investments. The government’s rules are clear — an individual can hold only one PPF account in their own name.
Opening additional PPF accounts in different banks or post offices is not permitted under the PPF Scheme. If more than one account is discovered in the same person’s name, the extra account will be treated as irregular and may have to be closed, with interest on the additional account typically not paid.
However, the rules allow parents or guardians to open a separate PPF account for a minor child. Even in such cases, the total annual contribution across the individual’s own account and the minor’s account cannot exceed Rs 1.5 lakh in a financial year, which is the maximum investment limit under Section 80C.
The PPF scheme remains a long-term savings instrument with a 15-year maturity period, offering tax-free interest and government-guaranteed returns. Investors can deposit a minimum of Rs 500 and up to Rs 1.5 lakh annually, making it a widely used option for retirement and tax planning.
In short, while you cannot open more than one PPF account in your own name, you can still invest in separate accounts for eligible family members such as minor children, within the overall contribution limits set by the government.
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